ESSENTIAL LEASE PROVISIONS EVERY LESSEE

ESSENTIAL LEASE PROVISIONS EVERY LESSEE SHOULD KNOW

Leasing property in India involves understanding various legal and financial provisions that can significantly impact tenants. Whether you’re renting a residential apartment or commercial space, being aware of these essential lease provisions is crucial for a smooth tenancy experience.

1. Rental Agreement vs. Lease Agreement

Rental Agreement: Typically short-term (11 months) and renewable. It offers flexibility but lacks long-term security.
Lease Agreement: Generally long-term (1-5 years or more). Provides stability but may involve stricter terms and conditions.

2. Rent and Security Deposit

Rent: Clearly states the monthly or annual rent payable to the landlord.
Security Deposit: Amount paid upfront as security against damages or non-payment of rent. In India, it’s often equivalent to 1-6 months’ rent.

3. Maintenance Responsibilities

Defines who is responsible for maintaining and repairing the property, including fixtures and appliances.
Specifies whether maintenance costs are borne by the landlord or tenant.

4. Duration and Renewal Terms

Specifies the lease duration (start and end date).
Conditions for lease renewal, rent escalation clauses, and notice periods for termination.

5. Use and Subletting

Specifies how the property can be used (residential, commercial, etc.).
Rules regarding subletting or allowing others to use the property.

6. Utilities and Services

Clarifies which utilities (electricity, water, internet, etc.) are included in the rent.
Responsibilities for paying utility bills and maintaining services.